Short answer
A holding fee on a rate lock compensates the lender for the carry cost of holding the rate before the loan funds. Agency early rate locks charge 1 to 5 basis points per month of lock window. CMBS forward locks (rare) can charge 5 to 15 basis points per month.
When does it apply?
On any rate lock that extends beyond the lender's standard window, typically more than 30 days. Sponsors locking 60, 90, or 120 days early pay holding fees that protect the lender from changes in funding cost during the wait period. The fees are usually netted from the rate-lock deposit at close.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1
- Daily Treasury Par Yield Curve Rates · U.S. Department of the Treasury · daily